Currency that's miles ahead of the rest

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The world has a new currency surpassing the US dollar, the euro,
the British pound or the Japanese yen - airline frequent flyer
miles, which have a greater total value than any of those other
currencies.

By the end of 2004, almost 14 trillion frequent flyer miles had
been accumulated worldwide, worth between two and 15 Australian
cents each. An analysis by the magazine The Economist says
the global stock is worth more than $US700 billion ($925
billion).

Once used exclusively by jet-setting business travellers,
frequent flyer miles, which were introduced in 1981, have become a
regular currency among holidaymakers and long-distance commuters.
More than 130 airlines issue them, handing out more than 14 million
free flights annually.

There are so many types of frequent flyer miles that
consultancies have sprung up in Europe and America devoted to
helping people get the most from their portfolios.

Ravindra Bhagwanani, the founder of Global Flight Management in
Frankfurt, said: "[Frequent flyer] miles are a game you have to
play. If you want to play a game successfully, you need to know the
rules."

But to the uninitiated, redeeming miles can be frustrating, with
airlines trying to restrict their use to unpopular flights at the
crack of dawn from out-of-town airports.

Experts say it often makes sense to join the loyalty club of
overseas airlines which have reciprocal agreements with local
carriers.

British Airways, with 1.7 million frequent flyers in its
Executive Club, says "miles" are among the four biggest currencies
used to buy its flights.

An airline insider cautioned: "You can call them a currency but
lot of our miles out there will have expired. A dollar won't
expire."